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( b ) Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal

(b) Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B,$34,000. The variable cost for A is $10, and for B,$14. The revenue generated by each unit is $18. At an expected volume of 8,300 units, which alternative should be chosen? [2 marks]
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